Cuts in education funding lead to limits
>>Print ViewPublication Date: 06/10/2009
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Further cuts to higher education operating cost funding may lead to empty positions, limited layoffs and reduced travel by instructors, according to Purdue’s director of budget and fiscal planning.
The director, Jim David, emphasizes that these are part of a plan already instituted in January, after Ind. Gov. Mitch Daniels first made his budget recommendation.
“We have been anticipating a cut in our appropriations from the state, so the first point is that we’ve been expecting that to happen. Our planning processes have included a decision not to raise people’s salaries in the upcoming year,” David said. “We’ve asked the operating units to cut their budgets by 2 percent, in anticipation of this shortfall in state appropriations.”
The current budget proposal by Daniels makes the same recommendation to cut higher education operating costs by 4 percent. “Operating costs,” or educational and base operating funds, encompass salaries, wages and benefits, fuel and utilities, building and grounds maintenance, and general supplies. Purdue’s educational and base operating fund budget, or general fund budget, is funded overwhelmingly by student fees and state appropriations – the two sources combined provided 90.4 percent of Purdue’s revenue in the ‘08-‘09 fiscal year.
Purdue’s general operating fund expenses grew by 5.05 percent from ‘07-‘08 to ‘08-‘09. (Purdue’s fiscal year begins July 1.) Every source for these funds saw a similar increase to make up the deficit; state appropriations grew by 5.18 percent, while student fees grew by 4.86 percent – less than the overall increase, meaning that while students saw a tuition increase, it was not proportional to the amount needed to make up a difference.
Purdue’s budget expenses have increased by an average of 6.85 percent each year since 2001; even with the pay freeze announced in early April, Purdue’s expenses still seem likely to increase by at least 1 percent. If the state budget does not maintain state appropriations for higher education, tuition – now the largest source of general operating funds – could rise to make up the difference.
Higher education funding was one of the sticking points that led to House Democrats walking out of a state budget committee meeting late last week. State Rep. Sheila Klinker, D-Lafayette, is on the committee, which was protesting a tax credit scholarship for private schools that was written into a new version of the budget. “The thought in the Democratic house caucus is that you shouldn’t do that if you’re not giving dollars to higher education,” said Klinker.
According to Klinker, a state funding cut would probably lead to a tuition increase. “Now is not the time to do that (raise tuition),” she said. “That’s why the budget committee walked out. They were cutting higher education and some other areas that just shouldn’t be cut. Not at this time.”
David emphasizes, however, the importance of waiting out the special session set to convene on June 11. “The party’s not over until the legislature makes their final decision, and they haven’t even reconvened yet,” he said. “Anything that might happen between now and the time that they adjourn is sheer speculation. So we’re just waiting.”